Mid-infrared spectra of difluoroacetic acid (DFAA) have been measured by isolating the molecule in argon and nitrogen matrices at 8 K and also in the vapor phase at room temperature. In argon matrix, the O-H stretching fundamental (νO-H) of -COOH group appears as a doublet with band maxima at 3554 and 3558 cm-1, and a similar doublet for C═O stretching fundamental appears at 1800 and 1810 cm-1. In the vapor phase, the νO-H transition is featured with multiple peaks, and the observed band shape has been deconvoluted as superposition of two transitions both having A-type rotational band contours. We have attributed these transitions to the two internal rotational isomers corresponding to the two distinct minima along -CHF2 torsional coordinate of the molecule. Natural bond orbital (NBO) analysis reveals that these torsional minima are the manifestations of different second order interactions involving bonding and antibonding orbitals corresponding to the rotor -CHF2 and COOH groups of the molecule. By use of the theoretically predicted rotational constants of the rotamers, the band profile for νO-H has been simulated satisfactorily by means of the PGOPHER method, and this has allowed estimating accurately the energy difference between the two rotamers as 0.54 kcal/mol. The predicted energy barrier for interconversion between the rotamers is very small, ∼0.5 kcal/mol from rotamer II to rotamer I, which implies that the molecule could hop almost freely between the two rotameric forms at room temperature. As a result, the frequencies of the key stretching vibrational modes, like νO-H, νC═O, and νC-H, undergo modulation with internal rotation of the rotor -CHF2 group. Such modulation of high frequency modes could be an efficient mechanism for acceleration of rotor-induced IVR (intramolecular vibrational redistribution) well documented in the literature. Furthermore, the spectra measured in matrix isolated environment show signatures for an energetically higher third rotamer, where -OH and -C═O groups are in anti orientation. It has also been shown that DFAA can easily form weak hydrogen bonded dimeric complexes with molecular nitrogen (N2), which causes νO-H to undergo a red shift of ∼30 cm-1 in argon matrix for all three DFAA monomers.